Strategy And Vision

We intend to become an
international lithium production
company through the development
of the Sonora Project in Mexico.

Our strategy to achieve this goal involves
a 5 point plan of action:

The Sonora Lithium project can address the increasing demand for lithium for electric vehicles and energy storage industries. In January 2018, Bacanora published a feasibility study on a small part of the Sonora Project that showed a pre-tax NPV of $1.25bn, 26% IRR and an operating cost of around $4,000 per tonne, being among the lowest in the industry.

Ganfeng are currently finalising the Front End Engineering Design and construction schedule for the Sonora Lithium Project with the objective of scheduling first commissioning of the lithium circuits currently under way.

We have used the Sonora pilot plant, which has been in operation for a number of years, to provide regular samples of its battery grade lithium products to prospective offtakers.
Hanwa - This initially led to Hanwa, one of Japan’s largest metals trading houses, signing a 10 year offtake agreement for Stage 1 of production and investing in the Company directly.
Ganfeng - In 2019, the Company signed a long term offtake agreement with Ganfeng, the world’s largest lithium metals producer by production capacity, for 50% of Stage 1 production and up to 75% of Stage 2 production, as well as investing in the Company at both a Group level and an asset level.

In February 2021 Bacanora completed a US$65 million fund raise and in May 2021 received a further US$31 million after Ganfeng subscribed to a further 53 million shares in the Company.
The Company settled the debt funding from RK Mine Finance in January 2022.

Ganfeng are currently finalising the Front End Engineering Design and construction schedule for the Sonora Lithium Project with the objective of scheduling first commissioning of the lithium circuits by the end of 2023. For more detail on our progress visit here.